Apple Plunges 7.14% on Trump Tariff Concerns

On April 3, 2025, Apple's stock dropped by 7.14% in pre-market trading, reflecting significant concerns among investors regarding the impact of new tariff policies announced by the Trump administration.

The recent tariff policies announced by President Trump have sent shockwaves through the tech industry, particularly affecting Apple. The new policies, which include a 10% baseline tariff on all countries and additional higher tariffs on countries with the largest trade deficits with the U.S., are set to take effect on April 9. This move has raised concerns about the potential impact on Apple's supply chain and profitability.

Apple, which relies heavily on overseas manufacturing, is particularly vulnerable to these tariffs. The company produces iPhones, AirPods, iMacs, and other products in countries like India, Vietnam, Malaysia, Thailand, and Ireland, all of which are now subject to these new tariffs. The tariffs range from 20% to 46%, depending on the country, and could significantly increase the cost of components and finished products.

Investors are worried that these tariffs could lead to a 7% drop in Apple's profits for the next year. The company may face higher costs for components and finished products, which could either reduce its profit margins or force it to pass on the increased costs to consumers through higher prices. Analysts have noted that while Apple has a strong brand and loyal customer base, the company may struggle to maintain its profitability in the face of these new tariffs.